Reliance Industries may shut KG-D6 Block’s MA Field by October

MA is one of the three fields currently producing in RIL-BP's KG block and the only one that produces both oil and gas. D1 and D2 are the other two fields producing only gas.Sanjeev Choudhary | ET Bureau | February 28, 2018, 08:55 IST

NEW DELHI: Reliance Industries will likely stop producing from its MA field in the KGD6 block by October following continuous decline in output for years, according to multiple people familiar with the matter.

MA is one of the three fields currently producing in RIL-BP's KG block and the only one that produces both oil and gas. D1 and D2 are the other two fields producing only gas.

MA will be the first of the three fields to be shut that initially generated big expectations but began disappointing within years of starting production, creating several controversies and legal disputes on the way.

Reliance, the operator of the KGD6 block, has presented the possibility of shutting the MA field by October 2018 in the annual work programme submitted to the government recently, people familiar with the matter said. The lease of floating production storage and offloading (FPSO) unit, which processes output from the MA field, is coming to an end by October, they said. Reliance didn’t respond to ET’s emailed query. Reliance owns 60% in the KG block while BP owns 30% and Niko the balance 10%.

The MA field began producing in September 2008 while the D1, D3 fields went onstream in April 2009. The average production from the KG block has fallen to 4.9 million metric standard cubic meters a day (mmscmd) during October-December of 2017 from a peak of 69.43 mmscmd in March 2010. The peak production included 66.35 mmscmd from D1and D3 and 3.07 mmscmd from MA. The gas output from MA field peaked in January 2012 to 6.78 mmscmd. The MA field produced 2,042 barrels per day of crude oil and condensate during October-December of 2017. About 70% of the gas reserves from D1, D3 and MA fields have been recovered so far, people familiar with the matter said.